Friday, April 13, 2018

2018 Portfolio Update (Apr)

 
  • Note: P/L computation only takes into account the current holdings in the portfolio, and excludes capital gains/losses and dividends from divested shares, and commission charges/fee

I have added Challenger Technologies at $0.485 earlier this month. No divestments were made. Although the retail industry is competitive, I find Challenger was able to establish its presence in Singapore and is a relatively cash-generative business.

My initial impression of Challenger business was unsustainable at the Funan IT Mall during its pre-redevelopment time. I thought the prices then was uncompetitive, compared to the likes of Sim Lim. However, I was subsequently surprised that it "survived".

I like some of its strategy such as its Valore line of products and the ValueClub which lets you pay $30 for a 2-year membership for exclusive discounts at any Challenger store island-wide. I think this is a clever strategy to retain its customer base as I myself also signed up and find myself renewing it and going back for IT-related product purchase.



 
 
It is also consistent in giving out dividends. Based on its past dividends, my yield-on-cost is >6% which satisfies my non-REIT yield criteria:




Dividend pay-out ratio is likely sustainable with no debt.


 

No comments:

Post a Comment